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Simavita shares soar 580 per cent with CE Mark approval

Consumer
ASX:SVA
25 November 2019 18:10 (AEST)

Simavita has seen shares soar today after landing CE Mark approval for its Smartz product.

The approval means Smartz meets the standards necessary to be marketed and sold in the European Economic Area.

Smartz is a technology incorporated into diapers and incontinence pads designed to give peace of mind of mothers, fathers, and carers.

The tech sends real-time data and information to a mobile phone app to alert parents and carers of wetness, dehydration, restlessness, temperature, and pressure sore management.

Simavita Executive Chairman Michael Spooner said Smartz has a significant competitive advantage to standard diaper manufacturers.

“Smartz addresses many of the issues faced in Australia and internationally in the care of the elderly including delivering on significant efficiency gains, whilst dramatically improving overall care standards,” Michael touted.

One of the major selling points of Smartz tech is its low manufacture cost. According to Simavita, the device’s sensor is cheap enough to create that the company’s “smart” diapers barely differ in cost to existing products.

With some recent changes to its business model, however, Simavita no longer manufactures Smartz nor does it hold any inventory. Rather, the company licenses the tech for distribution.

Company management told the market today it is in “ongoing discussion” with several potential partner companies regarding the tech. In terms of what these discussions may entail, shareholders will need to wait for a later announcement to find out.

Simavita shares closed a whopping 480 per cent up today, spiking from 0.7 cents each to a year-long high of 2.9 cents apiece. The company’s market cap is currently valued at $41.09 million.

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